Research On Paradox Of Okun's Law In China

According to the Okun's Law, when the economic is growing, it will add more labor force and the unemployment will be relieved. Commonly, growth of the economy and increase of labor force will happen together. Based on this phenomenon, okun, the famous economist of America put forward the famous Okun's law in 1962.According to the law, the increase of GDP reverse to the number of unemployment. When the economy is increasing, the number of unemployment is low; When the economy is down, the number of unemployment is high. But Chinese economic has been continuing to grow since it was established. Okun's law is not useful in China. When the economy increase, the phenomenon of unemployment does not disappear.Reverse to Okun's law, because China is special in its dual economy system and transition of industry. Dual economy system and capital bonus contribute to the reverse of Okun's law. The efficiency and adjustment of industry make the capital-driving industry instead the labor-driving industry. Now, china can not rely on the input of productive industry, and should begin to motivate on the technology.This article advances some policy of employment and advance the economy.